A former employee of Wellspring Capital Management filed a lawsuit in a New York Thursday alleging that the CEO's son, Christopher Dawson, drugged and repeatedly raped her one night in the. The defendants' motions rely on Federal Rule of Civil Procedure 12(b)(6). Ashmore for Wilson v. Dodds, 262 F. Supp. Later emails berate Prospect's representative for failing to agree to the AcuSport purchase more quickly. William F. Dawson, Jr., Chief Executive Officer of Wellspring, said, "My partners and I are pleased to complete the successful raising of Wellspring's sixth fund, which is a direct result of the strong relationships we have built with the investment community over many years and the returns we have generated. Our tight-knit culture enables transparent oversight and a streamlined decision-making process. . New York law prohibits both actual and constructive fraudulent conveyances. Relevant here: the plaintiff/litigation trust alleged that SportCos directors: Finally, the litigation trust also asserted a variety of other counts in its complaint related to other facts, circumstances, and actions that are not the subject of this Alert. Pentec Health Inc. Acquired by Wellspring Capital Management - PRWeb Alexander Carles' and Bradley Johnson's arguments are limited to the negligent misrepresentation cause of action, the only cause of action asserted against them. Sav. %PDF-1.5 % In 2010, Bain Capital acquired the company for US$1.8 billion. Pentec Health Inc. Acquired by Wellspring Capital Management Investments Number of Investments 2 Wellspring Capital Management has made 2 investments. In fact, the amended complaint states that the distributions at issue here were made in October 2012 and March 2013. 91], Andrew Kupchik [Docket No. New York law requires insolvency at the time of the transfer, and South Carolina law requires insolvency both at the time of the transfer, and at the time the creditor seeks to collect the debt. Since its founding in 1995, Wellspring has raised over $4.0 billion of initial capital commitments through six private equity funds. 1999)). 962 0 obj <>stream "); Terry v. Walker, 2006 WL 736861, at *5 (W.D. The plaintiff, however, asserts that federal conflict of law principles should govern what state's law applies in this case, because "[a] claim under 544(b) incorporates 'applicable law,' but it is a claim under federal law with a substantive federal law recovery scheme." Salaries posted anonymously by Wellspring Capital Management employees. The plaintiff's first and second causes of action both assert claims for fraudulent conveyances pursuant to 544(b) and S.C. Code 27-23-10. 598, 614 (Bankr. The principal and lead portfolio manager at Wellspring Capital is Avrohom Neumann. By teaming up with strong management, Wellspring seeks to unlock underlying value and pursue new growth opportunities through strategic initiatives, operating improvements and add-on acquisitions. The Wellspring court was ruling on a motion to dismiss, and therefore accepted the plaintiffs somewhat barebones and perhaps self serving assertions as true and in the light most favorable to that plaintiff. Id. Defendant Bernard Ziomek is in default in this matter. Wellspring Capital is a boutique discretionary management service with a portfolio positioned for high performance. Wellspring Philanthropic: An Ocean of "Dark Money" on the Left Investment Approach Target Investments Wellspring's objective is to acquire or invest in companies that are well-positioned to capitalize on change and can benefit from Wellspring's operating and financial expertise. Wellspring Capital formed SportCo Holdings, Inc. ("SportCo") to serve as a holding company for United Sporting Company, Inc. ("United Sporting"), Ellett's direct parent; Ellett; and its subsidiaries. Wellspring Capital Management LLC Chief Executive Officer Bill Dawson has taken a leave of absence, days after a former employee alleged in a lawsuit that he threatened her for accusing his. Wellspring, 2021 WL 4823513, at *10. Your livelihoodand your sanitydepend . Wellspring Capital Management Closes Fund VI at $1.415 Billion EFFECTIVE DATE; SEC: Terminated: 3/2/2007: The firm's objective is to bring partnership, experience and value creation to each investment. In re Merritt Dredging Co., Inc., 839 F.2d 203, 205 (4th Cir. Wellspring Capital Management LLC Chief Executive Officer Bill Dawson has taken a leave of absence, days after a former employee alleged in a lawsuit that he threatened her for accusing his son of sexual assault. The firm's objective is to bring partnership, experience and value creation to each investment. Wellspring Capital Management, founded in 1995, is a middle-market private equity firm that has approximately $2 billion of private equity capital under management. The elements of a negligent misrepresentation claim under South Carolina law are as follows: Turning now to the present case, the third cause of action must be dismissed under either New York or South Carolina law because the statements that the plaintiff asserts constituted negligent misrepresentations were all statements regarding potential outcomes of a potential business endeavor; thus, they relate to future events and cannot form the basis of a negligent misrepresentation claim. Wellspring Capital Management - Investments, Portfolio & Company Exits Accordingly, Wellspring did not find that the defendants in fact breached their duties, but rather held that the plaintiff, a litigation trust, had asserted a viable claim that could proceed to a trier of fact. SaaS, Android, Cloud Computing, Medical Device), Where the organization is headquartered (e.g. These facts, as recited in the complaint, are taken as true for purposes of the motions to dismiss. Mr. Friedman filed an amended complaint the same day. IAPD - Investment Adviser Public Disclosure - Homepage However, whether a fraudulent conveyance action is characterized as a tort action is unsettled. Even among California Democrats, Newsom is still in the negatives, with 54% wanting him to sit out in 2024 and only 35% wanting him to run. The Debtors in the bankruptcy cases, pending in the District of Delaware, are SportCo Holdings, Inc.; Ellett Brothers, LLC; United Sporting Company, Inc.; Bonitz Brothers, Inc.; Evans Sports, Inc.; Jerry's Sports, Inc.; Outdoor Sports Headquarters, Inc.; Quality Boxes, Inc.; and Simmons Guns Specialties, Inc. The courts analysis of the duty of loyalty claim can be fairly characterized as limited, consisting of four short paragraphs that largely restate or simply quote the complaint. Accordingly, SportCo began negotiations with certain of its lenders around a potential restructuring transaction. San Francisco Bay Area, Silicon Valley), Operating Status of Organization e.g. Wellspring Capital Management is a middle-market private equity financing firm. On 05/20/2022 Wellspring Capital Management, LLC Wellspring Cap filed an Other lawsuit against Barry, III.This case was filed in U.S. Bankruptcy Courts, New York Southern Bankruptcy. Public Records Policy. at 382. 2018) (distinguishing cases where the courts dismissed negligent misrepresentation claims based on "puffery" or founded solely on speculative statements regarding future profits as a result of proposed transactions, and finding that the misrepresentations at issue were actionable because they involved present facts). The defendants argue that Prospect is a subsequent creditor, because it had knowledge of and approved of the distributions prior to them being completed. The amended complaint fails to allege insolvency at the time of the transfer, an essential element of a fraudulent conveyance claim under either New York or South Carolina law, and therefore fails to state a claim under 544(b). In Wellspring, the Delaware bankruptcy court held that an alleged duty of loyalty breach could survive a motion to dismiss where: Bear in mind that alleged is the operative word here. Despite that agreement in principle, it was alleged in relevant part that: Unable to agree on the release and indemnification issue, SportCos out-of-court restructuring failed, and SportCo defaulted on its funded debt shortly thereafter. The parties are in agreement that New York and South Carolina law regarding negligent misrepresentations are substantially similar and that as a result, the Court is not required to engage in a choice of law analysis as to the third cause of action. Wellspring Capital Management - Wikipedia v. Holmes (In re Holmes), 610 B.R. Wellspring Capital Management is an American private equity firm focused on leveraged buyout investments in middle-market companies across a range of industries. The Firm will consider buyouts of private companies, acquisitions of divisions or subsidiaries of public companies, shareholder liquidity needs, partnering with entrepreneurs for growth opportunities, and special situations. endstream endobj 916 0 obj <>/Metadata 258 0 R/Pages 913 0 R/StructTreeRoot 384 0 R/Type/Catalog>> endobj 917 0 obj <>/MediaBox[0 0 612 792]/Parent 913 0 R/Resources<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI]>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 918 0 obj <>stream It is not intended as and should not be construed as financial, investment, tax, legal, regulatory, or other advice. Prospect is a sophisticated party and, to the extent that it wanted to confirm the predictions made by Mr. Carles and Mr. Johnson were in fact accurate, it could have exercised due diligence. If you want your business to survive, you need to understand your-self. Headquarters Location Lever House 390 Park Avenue New York, New York, 10022, United States Wellspring CEO Bill Dawson is taking a leave of absence, the firm said Tuesday Last week a shocking lawsuit was filed against his son Christopher It claims he drugged and violently raped and. Defendant Wellspring Capital Management LLC is a Delaware limited liability company with its principal place of business at 390 Park Avenue, New York, New York 10022. Wellsprings facts, as alleged, are fairly straightforward. Why is this public record being published online? Antares Capital Supports Wellspring Capital Management's Acquisition of By continuing to use this website, you agree to UniCourts General Disclaimer, Terms of Service, Amazon Pauses Construction on Second Headquarters in Virginia as It Cuts Jobs, Amazon Is Closing Its Cashierless Stores in NYC, San Francisco and Seattle, iPhone Maker Plans $700 Million India Plant in Shift From China, Stock Traders Are Ignoring Blaring Bond Alarms, S&P 500 Notches Best Week Since Late January: Markets Wrap. Investors in its most recent fund include the Washington State Retirement System, Minnesota State Board of Investment, Connecticut Retirement Plans & Trust Funds, Kansas Public Employees' Retirement In April 2018, Prospect agreed to defer two quarters of cash interest payments. The amended complaint further states, "As recently as 2015, Ellett was the fifth largest private company in South Carolina and the largest distributor of firearms in the United States, with annual revenues of $750 million, over 350 employees nationwide, and 175 employees in South Carolina." The emails, often using colorful language and harassing tones, essentially represent to Prospect that if the AcuSport transaction is not completed, Prospect will not get paid on its obligations. The court considered whether the plaintiff had proved the tort of innocent misrepresentation. . Blackstone to Acquire Tradesmen International from Wellspring Capital The District Court stated that "[w]hether a fraudulent conveyance claim should be characterized as a tort action is uncertain and disputed among American jurisdictions." Haynsworth Sinkler Boyd, P.A. The 2011 Wellspring Capital Partners V LP was fully invested at $1.2 billion and has generated positive returns for its investors to-date. [Amended Complaint, 54]. . In Sheldon, the defendant, a New York citizen, assigned some personal property to Mr. Dickinson. Prior results do not guarantee a similar outcome. Flipbooks. 85]. Wellspring Capital Management is an American private equity firm focused on leveraged buyout investments in middle-market companies across a range of industries. Wellspring has one of the best track records in middle-market private equity; its people, capital and reputation bring certainty to transactions. Wellspring Capital Management is a leading private equity firm headquartered in New York. Menu Home; Rankings. Time to Read: 6 minutes Casetext, Inc. and Casetext are not a law firm and do not provide legal advice. July 5, 2017). 89], Charles E. Walker, Jr. [Docket No. The firm, which is based in New York City, was founded in 1995 by Martin Davis and Greg Feldman. 24. Revenue: $500 million to $1 billion (USD) Competitors: Unknown. About Us - Wellspring Capital Please Update this case to get latest docket information. The choice of law provision in the Loan Agreements states: In October 2017, Wellspring Capital was contemplating a purchase of AcuSport, a competitor, by Ellett, for $14.8 million. D.S.C. Wellspring also rejected in cursory fashion the defendants argument that it is not necessarily a breach . 93], and Bradley Johnson [Docket No. This article about a private equity or venture capital firm based in the United States is a stub. Brought up in a family enjoying long-term success in real estate investment, Avrohom instead turned to the stock market. Fund VI brings the firm's assets under management to more . At Wellspring we pride ourselves on client service. Id. Wellspring Capital formed SportCo Holdings, Inc. ("SportCo") to serve as a holding company for United Sporting Company, Inc. ("United Sporting"), Ellett's direct parent; Ellett; and its subsidiaries. The defendants' motions to dismiss are granted. Instead, they may form the basis for a negligent misrepresentation claim if the party making the misrepresentation possesses some special expertise (by way of his job title or position, for example), or has some special knowledge about the particular fact that is allegedly misrepresented. It featured lower-priced clothing and was Gymboree's direct competitor for The Children's Place and Old Navy.. King County, 863 F. Supp.2d at 318. Va. Mar. @S1 $82N+ZJ | Particularly where negotiations may involve releases, indemnification, or similar provisions, be advised that the ever-present tendency for counterparties to exercise 20/20 hindsight is fully in effect. Lawsuit: Wellspring CEO Told - Institutional Investor At the conclusion of the hearing, the Court took the motions under advisement. Lister v. NationsBank of Delaware, N.A., 329 S.C. 133, 143 (Ct. App. The issue in Merritt Dredging was the sale of a barge and the priority of parties' interests in the proceeds of the sale. Reputation Management. 'Ov}b0. Trump legal team requests six-month delay in New York civil lawsuit Try our Advanced Search for more refined results. *aUQBT&1#J$8Q)=WE9M'v1s_)GG+.kbN;yELi.UD1N{f'u$y`'GCJfS;4yXwbW${%^tcxG2}+/P@U `a$b6? to negotiate for release or indemnification, with the defendants arguing that such releases may have saved the post-restructuring company the expense of indemnifying the D&O Defendants in subsequent litigation. Its success is based on a portfolio that, since inception in 2014, has delivered double digit returns on an annualised basis. However, the Court has the discretion to sua sponte dismiss a complaint pursuant to Fed. Please see our Privacy Policy. It had previously received notification, in early 2018, that the Borrowers would default on their obligation under the Loan Agreements and the Amendments in the second quarter of 2018. The origins of Wellspring Philanthropic Fund are shrouded. Wellspring Capital Management, founded in 1995, is a leading middle-market private equity firm that manages more than $3 billion of private equity capital. Id. Wellspring has earned the reputation as a trusted, reliable partner and is often the preferred partner of a portfolio companys senior management team. 609, 614 (Bankr. Active, Closed, This describes the type of investor this organization is (e.g. But Wellspring would arguably undermine the ability to negotiate for what are customary and, indeed, necessary protections for corporate decisionmakers in those same transactions, such as releases, indemnity, or exculpation. You can help Wikipedia by expanding it. Mar 19, 2019 New York private equity firm Wellspring Capital Management said Monday it has acquired Center for Diagnostic Imaging, a Minneapolis-based operator of MRI and CT scanners that. By teaming up with strong management, Wellspring is able to unlock underlying value and. The firm functions as a strategic rather than tactical partner, providing management teams with top-line support, M&A experience and financial expertise, and access to resources. The Court now issues this order, granting the motions to dismiss for the reasons set forth below. Sav. Marlow v. Oakland Gin Co. (In re The Julien Co.), 128 B.R. 2100 Geng Road, Suite 210 Palo Alto, CA 94303. Wellspring Capital Management is a leading middle-market private equity firm headquartered in New York. Federal Rule of Bankruptcy Procedure 7012(b). Wellspring buys PE-backed Center for Diagnostic Imaging The firm, which is based in New York City, was founded in 1995 by Martin Davis and Greg Feldman. Wellspring Capital Management Acquires Paragon Films By Zachary Zagger (July 31, 2020, 9:56 PM EDT) -- Private equity firm Wellspring Capital Management LLC on Friday hit a slew of its insurers with a suit in New York state court alleging they must defend it against claims that it plundered millions of dollars from gun seller United Sporting Cos. Inc., which blamed its bankruptcy on Donald Trump's win in the 2016 election. Access to case data within articles (numbers, filings, courts, nature of suit, and more. 1991) (unpublished table decision). Wellspring Capital Management is a leading private equity firm headquartered in New York. Twitter Revenue, Earnings Fell About 40% in December, WSJ Says, John Malone andCharter Directors Agree to $87.5 Million Settlement, China E-Commerce Giant JD Set for $1.4 Billion Discount Spree, Between Rounds of Golf, Trumps Searching for the Perfect DeSantis Diss, Your Saturday UK Briefing: Sunak Chalks Up a Win as the Budget Looms, Harrods Shrugs Off Recession Fears as Rich Get Richer, FT Says, Wealthy NYC Family Feuds Over $258 Million Madison Avenue Sale, Tom Sizemore, 'Saving Private Ryan' Actor, Dies at 61, The Exhibit Reality TV Show PittingArtist Against ArtistIs No Masterpiece. The February 20, 2018 stated, "You're [sic] economics are going down and the risk of chapter is going up. Working at Wellspring Capital Management | Glassdoor Wellspring Capital Management LLC Chief Executive Officer Bill Dawson has taken a leave of absence, days after a former employee alleged in a lawsuit that he threatened her for accusing his son of sexual assault. View Videos. View contacts for Wellspring Capital Management to access new leads and connect with decision-makers. Wellspring Capital Management LLC - Company Profile and News 91], F. Hewitt Grant [Docket No. In Wellsprings view, the extent to which releases might have benefitted SportCo (as opposed to benefiting the directors alone) was at least in part a question of fact that could not be resolved on a motion to dismiss. (Bloomberg) -- Wellspring Capital Management LLC Chief Executive Officer Bill Dawson has taken a leave of absence, days after a former employee alleged in a lawsuit that he threatened her for accusing his son of sexual assault."We are taking this matter very seriously, and have launched an immediate internal investigation," Jeffrey Gould, Wellspring's head of marketing and investor . Since its founding in 1995, Wellspring has raised over $4.5 billion of initial capital commitments through six private equity funds. at 321. The December 26, 2017 email stated, "So you will waive [your interest payments]. GitHub export from English Wikipedia. [cV3ljHkT/bx @A,20p1 ks Friedman v. Wellspring Capital Mgmt. (In re Sportco Holdings) Wellspring Capital Management David Westin speaks with top names in finance about the week's biggest issues on Wall Street. The Court does not have to decide whether Prospect is a preexisting or a subsequent creditor. Over the past 20 years, Wellspring has invested in over 35 platform investments across . These emails may be a lot of things, but negligent misrepresentations they are not. The Court addresses in this order only those arguments that clearly mandate dismissal. The defendants filed separate motions. Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through . Id. at 613-14. Phone: 650 729-8626. Fund VI brings the firm's assets under management to more than $4.4 billion. Business Restructuring, Specifically, Mr. Carles and Mr. Johnson represented to Prospect that a purchase of AcuSport would result in: (1) Debtors' capturing 20 to 30 percent of AcuSport sales; (2) Acquisition of $14 million worth of AcuSport's inventory at a significant discount; and (3) Realization of an immediate $7 million profit from the sale of the inventory acquired in the purchase. Bill Dawson is taking time off from his $2.2 billion private equity firm Wellspring Capital Management, which will investigate the claims of . Probitas Partners acted as exclusive placement agent and Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal counsel with respect to formation of Fund VI. from 8 AM - 9 PM ET. The plaintiff relies on the fact that Ellett was unable to pay the debt owed to Prospect at the time that it had to be paid in full; however, this is not the only relevant point in time. Already a subscriber? Read More Key Principal: William Dawson Junior See more contacts Industry: Management investment, open-end Printer Friendly View Address: 605 3RD Ave FL 44 New York, NY, 10158-0011 United States See other locations Phone: Website: www.wellspringcapital.com Employees (this site): Actual In King County, the court considered suits by investors seeking to recover losses incurred after the collapse of a structured investment vehicle. Full title:Ronald J. Friedman, as the trustee for the SportCo Creditors' Liquidation, Court:UNITED STATES BANKRUPTCY COURT DISTRICT OF SOUTH CAROLINA. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

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